GOCC dividends to fund infra

Finance Secretary Carlos G. Dominguez III The dividend contribution of several government owned and controlled corporations (GOCC) would help tame the target deficit and finance the infrastructure and human capital development spending of the government.

Finance Secretary Carlos Dominguez III said the 54 GOCC dividend contribution of some P32 billion is a significant driver seen sustaining the country’s economic achievements.

“It is difficult to imagine our economic achievement without the tremendous contributions of our GOCC. They have made possible mass housing, rural electrification, secure and safe water supplies for our burgeoning population, reliable mass transport and stable food prices, efficient health programs and social security services,” Dominguez said at this year’s GOCC Day held at the Rizal Hall of the Malacañan Palace.

On Wednesday’s Kapihan sa Manila Bay, Dominguez said the GOCC are now more compliant to rules that allowed them to achieve this historic financial outcome.

Eight state-run institutions in the last fiscal year, the Philippine Deposit Insurance Corp., the Civil Aviation Authority of the Philippines, the Development Bank of the Philippines, the Manila International Airport Authority, the Philippine Ports Authority, the National Power Corp., the Bangko Sentral ng Pilipinas and the Philippine Amusement and Gaming Corp. contributed at least P1 billion in dividends each.

Dominguez also lauded his team for their collective exemplary performance, particularly Undersecretary Tonette Tionko and Assistant Secretary Mark Joven.

As part of its fiscal oversight functions, the Department of Finance (DoF) is responsible for overseeing the financial sustainability of GOCC. Fiscal support such as national government guarantees on GOCC loans, advances for debt servicing and the determination and collection of GOCC dividends are also within the ambit of the DoF.

The government has a total of 125 GOCC. Its newest is the Overseas Filipino Bank, which caters to the banking and financial needs of overseas-based Filipinos.

Dominguez said that because each GOCC has a unique mission, they have different management requirements and financial performance standards.

“Some, as we know, are designed to lose money and require subsidies to fulfill their missions. Others, simply, are not managed well enough. The greater number, I am happy to note, operate with such efficiency that they are able to turn in a profit and remit dividends to the national government,” Dominguez said.

Last year, total dividend remittances from GOCC reached P30.46 billion.